A Trio of Stocks With High Returns on Equity

These businesses have been very efficient in generating profits

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Feb 09, 2022
Summary
  • United Microelectronics, W.W. Grainger and Hasbro have higher return on equity ratios than most of their peers.
  • Wall Street also likes these stocks.
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When a company's return on equity ratio is superior to most of its competitors, it generally indicates the company has been very efficient in generating profits. Thus, investors may want to consider the following stocks since they are performing better than most of their peer group companies in terms of a higher ROE ratio.

United Microelectronics

The first stock investors could be interested in is United Microelectronics Corp. (

UMC, Financial), a Taiwanese semiconductor wafer foundry operator with sales primarily in the U.S., Europe, Taiwan and other Asian countries.

United Microelectronics has a ROE ratio of 18.77% versus the industry median of 9.92%, ranking higher than 72.45% of 853 companies that are operating in the semiconductors industry.

The share price was $10.02 at close on Tuesday, almost unchanged year over year, for a market capitalization of $24.93 billion and a 52-week range of $7.90 to $12.68.

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The stock has a price-earnings ratio of 15.30 and a price-book ratio of 2.66.

GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $13.49 per share.

W.W. Grainger

The second stock investors could be interested in is W.W. Grainger Inc. (

GWW, Financial), a Lake Forest, Illinois-based distributor of maintenance, repair and operating products in North America and internationally.

W.W. Grainger has a ROE ratio of 54.8% versus the industry median of 8.75%, which ranks higher than 98% of the 150 companies that are operating in the industrial distribution industry.

The share price has increased by 30.35% over the past year to trade at $482.31 at close on Tuesday for a market capitalization of $25.26 billion and a 52-week range of $367 to $527.06.

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The stock has a price-earnings ratio of 24.71 and a price-book ratio of 11.70.

GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of $539 per share.

Hasbro

The third stock investors could be interested in is Hasbro Inc. (

HAS, Financial). Based in Pawtucket, Rhode Island, the company is known for it large portfolio of toys, games and media assets.

Hasbro has a ROE ratio of 15.62% versus the industry median of -2.48%, ranking it higher than 84% of the 776 companies that operate in the travel and leisure industry.

The share price has risen by 2.74% over the past year to close at $92.29 on Tuesday, determining a market capitalization of $13.10 billion and a 52-week range of $85.97 to $105.73.

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The stock has a price-earnings ratio of 30.72 and a price-book ratio of 4.27.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $112.54 per share.

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Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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